HDFC Bank MCLR Rates Cut by Up to 10 Bps From September 2026: Check New Rates Across All Tenures

HDFC Bank has trimmed its Marginal Cost of Funds-based Lending Rate (MCLR) across all listed tenures, potentially offering some relief to borrowers whose floating-rate loans remain linked to the benchmark. The latest revision, effective September 7, 2026, comes with cuts ranging between 5 and 10 basis points, bringing the bank's MCLR range down to 7.90%-8.60%.

HDFC Bank MCLR Rates Cut by 5-10 Bps: Check New Rates Across All Tenures

The move is particularly relevant for existing borrowers with MCLR-linked home loans, personal loans, business loans and other floating-rate credit facilities. However, the reduction in the benchmark does not necessarily translate into an immediate decline in the interest rate or EMI, as the actual benefit depends on the loan's reset cycle, applicable spread and terms of the lending agreement.

HDFC Bank Latest MCLR Rates From September 2026

HDFC Bank has reduced its MCLR across all seven listed tenures. While the shortest-duration benchmarks have witnessed a 10-basis-point reduction, some of the longer-tenure rates have been trimmed by 5 basis points.

The revised rates are:

Overnight MCLR: The rate has been reduced by 10 basis points from 8.00% to 7.90%.

One-month MCLR: The benchmark has declined by 10 basis points from 8.00% to 7.90%.

Three-month MCLR: The rate has been cut by 10 basis points from 8.15% to 8.05%.

Six-month MCLR: The benchmark has been lowered by 5 basis points from 8.30% to 8.25%.

One-year MCLR: The rate has declined by 5 basis points from 8.40% to 8.35%.

Two-year MCLR: The benchmark has been reduced by 10 basis points from 8.55% to 8.45%.

Three-year MCLR: The rate has been cut by 5 basis points from 8.65% to 8.60%.

With the latest revision, the overnight and one-month MCLR stand at 7.90%, making them the lowest among the bank's listed benchmarks. The three-year MCLR remains the highest at 8.60%.

Four of the seven tenures have seen a 10-basis-point reduction, while the remaining three have been lowered by 5 basis points.

What Does MCLR Cut Mean for HDFC Bank Borrowers?

The latest rate revision could be significant for borrowers whose loans continue to be benchmarked to MCLR. A lower benchmark rate can reduce the interest rate applicable to such loans once the revised rate becomes effective for the individual borrower.

However, the benefit may not be visible immediately. Existing floating-rate loans generally have a specified reset frequency, meaning the revised MCLR is applied only when the loan reaches its next scheduled reset date.

Consequently, two borrowers with similar loans could see the impact of the latest HDFC Bank rate cut at different points in time, depending on their respective reset cycles.

The final lending rate is also influenced by the spread charged over the applicable MCLR. Therefore, a reduction in the benchmark should not be interpreted as an equivalent reduction in every borrower's effective loan rate.

HDFC Bank MCLR Cut: How Much Is 5 or 10 Bps?

A basis point, commonly referred to as a bps, represents one-hundredth of a percentage point. A reduction of 10 basis points therefore translates into a 0.10 percentage-point cut in the benchmark rate.

Similarly, a 5-basis-point reduction represents a 0.05 percentage-point decline. For instance, the one-year MCLR has moved from 8.40% to 8.35%, representing a 5-basis-point reduction. The two-year MCLR, meanwhile, has fallen from 8.55% to 8.45%, reflecting a 10-basis-point cut.

These changes apply to HDFC Bank's benchmark lending rates and should not be confused with a direct 5% or 10% reduction in a borrower's EMI.

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